Raw Land Hard Money Loans

Raw Land Hard Money Loans

Raw Land Hard Money Loans

Raw Land Hard Money loans or Private Capital Land Mortgage is a particular kind of asset-based loan funding with which a customer gets funds secured by the value of a property. With no credit check or income documents required, these loans are very simple and quick to fund. The most common use for these loans are fix and flips and short term financing needs.

Private Equity Raw Land Loans are normally provided by small personal investors, hedge funds and other private institutions that are not traditional banks. Most hard money loans are not based on the borrowers credit worthiness but rather on the asset/property. Because of the risk taken by the loan provider, interest rates are usually higher than traditional home loans. Hard money loans have shorter terms and normally are for 6 months to 5 years and are not meant long term financing solution.

Purchasing land enables people to build the home of their dreams, and if you are thinking to buy land, it might be a difficult decision. As land is expensive enough, you’ll might have to look up for a mortgage lender to finance the purchase. But a better option will be to apply for a land loan. For the borrowers, land might seem a safe investment, but for lenders these raw land loans are risky. Due to this reason, the approval for the raw land hard money loans becomes a difficult and cumbersome process that other kind of hard loans.

Custom Mortgage is a professional hard loan providing firm that holds expertise in offering exceptional outputs to global clients. Specialized in the raw land loans, hard loans, and raw land hard money loans, we assist the borrowers to find the right lenders for them and offer them the appropriate financing services. Custom Mortgage even underwrites loans in myriad cases where traditional banks and other lenders refuse to or are unable to approve a loan.

Purchase or Refi

  • MAX LTV 80%
  • ALL PROPERTY TYPES
  • MIN Loan amount 100k
Apply Now

Fix and Flip Most Popular!

  • MAX LTV 80%
  • MAX LTC 90%
  • MIN Loan amount 100k
Apply Now

Construction

  • MAX LTC 90%
  • MIN Experience 5 projects
  • MIN Loan Amount 100k
Apply Now

Private Funds

Hard money loans are loans that are given by private entities i.e., they are not offered by banks, credit unions, societies and other conventional money lenders. What makes the hard loans unique is that the lender does not need to know your financial situation (whether you can be able to repay the loan). All you need is a good property that you can place as collateral. Usually, the lender will offer 40% to 70% of the value of the property offered as collateral. Since no financial report is required to access these loans, the loans are ideal for people with a bad credit history but have property to offer as collateral.

How Conventional and Hard Money Loans Differ

The main difference between the two is that the traditional loans are given by credit unions, banks and other institutions, while the hard loans are given by lenders who are privately funded.
Another difference is that conventional loan lenders require more documents from you in order to offer you the loan. For example, a bank will need to proof that you are capable of repaying the loan (for example the bank may require you to provide your pay slip and other supporting documents).
On the other hand, the hard money loan lenders don’t require you to provide proof that you are capable of repaying the loan; all you need is to place a good property as collateral and the lender will give you a loan that is up to 70% the value of your collateral.
Conventional loans take long to close (can take up to months); hard money loans are usually quicker to close.
Finally, the interest rates charged for the hard loans are usually higher than those charged for the conventional loans. The reason why the interests charged are higher is because the hard loan is usually more risky than the conventional loan.

Who Qualifies For The Hard Money Loans?

These loans are ideal for the people who are credit impaired. This is because, as long as you have good collateral, the hard loan lenders will offer you a loan even if you are bankrupt.
These loans are ideal for those who want funds quickly—this is because the loans close quickly.
The loans are also ideal for the foreign nationals who will not be given loans in other institutions since they are non-citizens of a given country.
Advantages of Hard Money Loans

Hard money loans have several advantages:

Rates starting at 7.99%
One great advantage is that the loans are easier to access; therefore, if you don’t meet the qualifications of the conventional lender, you can easily access the loan without undergoing rigorous paperwork.
Another advantage is that the loan has many collateral options. For example, you can use your home or the future cash flows of the property as collateral. This enables you to access a loan regardless of the property that you have.
Immediate Decision. Same Day Approvals
Funding in 72 Hours once we have a complete loan file
Loans Focused On Your Equity, Not Your Credit
Flexible Terms To Fit Your Needs
Less Paperwork than conventional Loans
Decision based on value of your asset, not your credit
No Income Check loan programs available
Low FICO & Credit Problems OK
Foreclosure, Bankruptcy OK
Hard Money Financing

If you have a bad credit history but you have a good property to offer as collateral, then you should consider taking hard money loans. You no longer have to wallow in self pity because you have a not-so-good credit history.

Why Hard Money?

The certifying standards for a difficult Hard Money financing differs extensively by loan programs and loan function. Credit ratings, earnings and various other traditional loaning standards could be examined. Nonetheless, most equity based loan providers mainly certify a loan quantity based upon the value of the asset/property being used as collateral. The LTV for private equity loans are typically between 65%-80% of the property value.

Purchase or Refi

  • MAX LTV 50%
  • ALL PROPERTY TYPES
  • MIN Loan amount 100k
Apply Now

Fix and Flip Most Popular!

  • MAX LTV 80%
  • MAX LTC 90%
  • MIN Loan amount 100k
Apply Now

Construction

  • MAX LTC 90%
  • MIN Experience 5 projects
  • MIN Loan Amount 100k
Apply Now

Private Funds

Hard money loans are loans that are given by private entities i.e., they are not offered by banks, credit unions, societies and other conventional money lenders. What makes the hard loans unique is that the lender does not need to know your financial situation (whether you can be able to repay the loan). All you need is a good property that you can place as collateral. Usually, the lender will offer 40% to 70% of the value of the property offered as collateral. Since no financial report is required to access these loans, the loans are ideal for people with a bad credit history but have property to offer as collateral.

How Conventional and Hard Money Loans Differ

The main difference between the two is that the traditional loans are given by credit unions, banks and other institutions, while the hard loans are given by lenders who are privately funded.
Another difference is that conventional loan lenders require more documents from you in order to offer you the loan. For example, a bank will need to proof that you are capable of repaying the loan (for example the bank may require you to provide your pay slip and other supporting documents).
On the other hand, the hard money loan lenders don’t require you to provide proof that you are capable of repaying the loan; all you need is to place a good property as collateral and the lender will give you a loan that is up to 70% the value of your collateral.
Conventional loans take long to close (can take up to months); hard money loans are usually quicker to close.
Finally, the interest rates charged for the hard loans are usually higher than those charged for the conventional loans. The reason why the interests charged are higher is because the hard loan is usually more risky than the conventional loan.

Understanding Land Loans

Land loans are a kind of credit that helps you in purchasing a vacant piece of land where you can build your home in future or a raw land on which you don’t have any plans to develop. As these kinds of loans tend to be riskier to the lenders, so borrowers don’t get as favorable terms as they get in other kinds of mortgages. It is even depicted that the raw land owners most likely stop making payments and leave the contract in between, and further, the land becomes difficult to resell. This is because the demand for a home is more than that of land.

So, the major fear of lenders is that if they give a raw land loan, will they get the money paid back completely on time or not. For this reason, before giving a hard loan or a raw land hard money loan, the lenders ask the borrower to make a substantial down payment and even implies high interest rates. While some raw land loans might have shorter repayment terms that other long-term mortgage loans.

Who Qualifies For The Hard Money Loans?

These loans are ideal for the people who are credit impaired. This is because, as long as you have good collateral, the hard loan lenders will offer you a loan even if you are bankrupt.
These loans are ideal for those who want funds quickly—this is because the loans close quickly.
The loans are also ideal for the foreign nationals who will not be given loans in other institutions since they are non-citizens of a given country.
Advantages of Hard Money Loans

Hard money loans have several advantages:

Rates starting at 7.99%
One great advantage is that the loans are easier to access; therefore, if you don’t meet the qualifications of the conventional lender, you can easily access the loan without undergoing rigorous paperwork.
Another advantage is that the loan has many collateral options. For example, you can use your home or the future cash flows of the property as collateral. This enables you to access a loan regardless of the property that you have.
Immediate Decision. Same Day Approvals
Funding in 72 Hours once we have a complete loan file
Loans Focused On Your Equity, Not Your Credit
Flexible Terms To Fit Your Needs
Less Paperwork than conventional Loans
Decision based on value of your asset, not your credit
No Income Check loan programs available
Low FICO & Credit Problems OK
Foreclosure, Bankruptcy OK
Hard Money Financing

If you have a bad credit history but you have a good property to offer as collateral, then you should consider taking hard money loans. You no longer have to wallow in self pity because you have a not-so-good credit history.

Land Loans Programs at Custom Mortgage

You can get a wide range of land loan options to finance your land purchase, each of them has its own specifications, benefits, and requirements. At Custom Mortgage, we deal with a vast array of loan programs that can meet your financing requirements perfectly. Whether it’s a refinance, purchase, or the cash-out of land, we keep you covered in all cases.

Raw Land: When a person wants to purchase land for future development- either commercial farm or anything else, raw land loans are the best. Specifications of this loan program include:

  • No pre-payment penalties

  • Rates start at 2.9%

  • Land can be of any type- rural or suburban

  • Flexible payment dates

  • Minimum land size- 5 acres

  • Adjustable rate up to 10 years and fixed rate up to 30 years fixed rate

Commercial Land: These loan programs are made available regardless of the stage of development. Terms for these loan programs include:

  • No documentation

  • Terms for 12-36 months

  • Cross collateralization

  • Up to 50% LTV

  • No minimum credit score

  • Loan value: $500,000 to $20,000,000

Residential/Subdivision Development: These loan programs are for the ones who need to build or purchase land for building multiple residences (like multiple single family residences). These properties could be- raw land, entitled land, un-entitled land, residential subdivision, or vacant land. Terms for these loan programs include:

  • Terms from 12-36 months

  • Interest only options

  • Up to 50% LTV

  • No minimum credit score required

  • Closes within three weeks

  • Loan Value: $500,000 to $20,000,000

  • Loan types: Refinance, purchase, cash out, DPO, bank work out, foreclosure prevention, stalled residential subdivisions.

Hard Money Land Loan: A hard money loan is a short-term loan that is funded by private investors. Hard money lenders are concerned with property’s value rather than the credit score of the borrower. These kinds of loans come with terms for around 12 months, but it might extend to 2 to 5 years. Terms for these loan programs include:

  • Terms from 12-36 months

  • Interest only options

  • Up to 50% LTV

  • No minimum credit score required

  • Closes within three weeks

  • Loan Value: $500,000 to $20,000,000

  • Loan types: Refinance, purchase, cash out, DPO, bank work out, foreclosure prevention, stalled residential subdivisions.

Finding the Right Lender for a Raw Land Loan

Firstly, you need to find a suitable lender that deals with the loan and financing services you are looking for. Verify the experience they hold in the financing industry and check if they deal with trusted lenders or not. Rather you can rely on our experts who can assist you in finding the best suitable lenders to meet your loan requirements in the best way and offer you the best mortgage and financing services.